Yesterday, gold broke down from a high with volume expansion. The Asia-Europe session consolidated in a narrow range around the 4420 level with cautious trading sentiment. The US session was pressured by the stronger US dollar index and rising US Treasury yields. Gold prices declined rapidly from the 4445 high, successively breaking through the 4400 psychological level and short-term moving average support, probing a low of 4311. Late-session showed a minor rebound but failed to recover losses, with the daily chart closing as a medium bearish candle. Short-term bearish momentum was significantly released, and the technical picture entered a weak consolidation recovery phase.



This morning, gold prices stabilized with buying interest triggered in the 4310-4320 range, showing a weak oscillating rebound pattern, but rebound strength remains limited, unable to escape the overall weak tone. From a medium-term perspective, this pullback represents a deep correction within the uptrend; the medium-term bullish framework remains intact, but the short-term downtrend still has continuity and is not a trend reversal. If the daily close fails to hold above 4400, the weekly chart may close with a long bearish candle, and gold prices could further test support near 4200 next week; conversely, if the rebound breaks through 4450, it's expected to ease the short-term decline.

Key support levels concentrate in the 4300-4320 zone, the confluence of daily lows and previous lows, also the key defensive line for bulls; secondary support references 4260-4280, near the lower rail of the downtrend channel. Short-term resistance is at 4400-4420, the daily rebound resistance and bull-bear dividing zone; above that, strong resistance at 4450-4480 is the key level to reverse short-term weakness.

Operationally, short-term outlook turns bearish-dominated, primarily selling on rebound rallies with caution against bottom fishing. Can layered position short orders in the 4400-4420 range with stop loss above 4450, targeting first at 4320-4340, then 4300 nearby on break. If rebound is pressured at 4450-4480, can continue light short positions with quick entry and exit; if breaking below 4300, then follow the trend toward the 4260-4280 zone.
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